Advice on getting a mortgage for Russian national living and working in the Uk on a Visa
What we will cover
✔ Mortgage for Russian nationals on a Tier 1 and Tier 2 Visa
✔ Criteria and Underwriting rules for Russians
✔ Advice on deposit, rates and affordability calculations
✔ Low deposit high income multiple schemes
I know how difficult it is to get up-to-date and clear information on getting a Mortgage for Russian nationals on a Visa so I below I have attempted to do just that. If anything remains unclear I will happily personal speak to you without charge. I will charge if you want me to oversee your applying for a mortgage though but only when it has successfully gone through.
I would like to start off by saying that I’m not an Russian National myself, as you can probably tell by looking at my photo, but I do have multiple Russian clients who I have successfully helped to get their first, second and third mortgages.
It is currently hard to get a mortgage in the UK if you are a Russian National on a visa without the help from a professional mortgage broker, such as Niche Advice Limited. The lenders have a finite amount of money to lend and are selective in their customer choice. Understandably their preference and staff training is geared to lend to the indigenous population, who have lived here all their lives, rather than a Russian on a visa that appears in their branch one day on the off chance. This is critical as their in-experience in dealing with foreign nationals is likely to provide you with incorrect information which may lead you to lose your property.
It’s easy looking for different answers on the mortgage Internet forums or calculators but trust me when you want to get a specialist foreign national mortgage for Russians you will need someone who has done it before. In short, the search engines are too simplistic to cover the process for Russian’s on visas wishing to buy in the UK.
For instance: the UK lenders have different criteria when it comes to foreign nationals which spans across: County; Visa Type; Credit Profile; Date entered UK; Date of visa Expiry/ Renewal; Occupation; Date started work; Length in current role; Martial status; Deposits; Affordability Calculations and that’s just the some of the headings.
Different lenders will have different processes. So for example one lender will write for an employment reference for foreign nationals whereas others will simply require last three months’ payslips. Source of Deposit is also a big factor in accepting Russians for mortgages, and we have extensive experience in advising our clients on different approaches lenders take, which is invaluable, and is the part where real experience is needed.
To date most of my Russian mortgage clients have been in good occupations and can demonstrate excellent earnings, however, as they have only lived in the UK for a short period their savings in UK banks is modest so they are looking for high-loan-to-value mortgages. The good news is I can help with as little as 10% as the deposit but my is always try to put down as much is possible as there is a big difference between a 90% loan to value deal and 85% one.
To try to minimise the upfront costs we can access to free valuation and no fee products (typically saving clients around £1500) but these type of products have a direct bearing on your current situation specifically in regards to how long you’ve been working here and when your Visa renewal date is so it is very important we fully discuss your current circumstances and plans.
We can discuss the suitability of each product as we access the whole of the UK mortgage market.
What type Mortgage for Russian nationals can you get?
90% Mortgage for Russian Nationals on a visa looking to put down 10% deposit.
It’s obvious to say the more deposit you have the better the rates become but in the below scenario. There is quite a big difference between 10% deposit and a 15% deposit in relation to the rate. So if you have more put down more to get a better deal.
EXAMPLES: Based on a purchase price of £250,000 and a repayment mortgage over 25 years. Mortgage products below are current as at 23 July 2014:
Product One: 2 Year Fixed – Minimum deposit 15% – Mortgage £212,500
Initial pay rate 3.24% (APR 4.2)
Valuation Fee £210 / Arrangement fee £999
Currently at £1,034.42 per monthuntil 30/09/2016. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,141.90 per month.
The main early repayment charges are 3% of the amount repaid in the fixed period. There is a telegraphic transfer fee of £35. Redemption Fee £80 on full redemption.
Product Two: 2 Year Fixed – Minimum deposit 10% – Mortgage £225,000
Initial pay rate 4.79% (APR 4.9)
Valuation Fee £Free / Arrangement fee £Nil / £250 cashback
Currently at £1,287.95 per monthuntil 02/10/2016. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,281.89 per month.
The main early repayment charges are 3% of the amount repaid in the fixed period plus the repayment of the cost of the valuation and £250 cashback.
There is a telegraphic transfer fee of £35. Redemption Fee £225 on full redemption.
The products above can be used for many foreign nationals living and working in the UK and are not specifically design for Russian nationals. In order for us to be able to recommend a suitable product it is essential for you to give us as much information as you can about your current circumstances specifically updating us on your visa and work status.
For more information on getting a Mortgage for Russian nationals on a visa please contact us on T: (020) 7993 2044 or alternatively complete the enquiry form on this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London and is an experts in getting a mortgage for doctors in the UK.